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Genl. Alexander Hamilton's 

CONFIDENTIAL LETTER TO ROBERT MORRIS 
ON THE GOVERNMENT OF NEW YORK, AND 
HIS ESTIMATE OF THE LEADING MEN OF THAT 
STATE. 



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Sjr Albany Augt. 13, 1782 

I promised you in former letter to give you a full view 
of the situation and temper of this state: I now sit down to execute 
that task. 

You have already in your possession a pretty just pic- 
ture of the lott drawn by the Legislation in perhaps too highly col- 
oured in some places, but in the main true. It is the opinion of the 
most sensible men, with whom I converse, who are best acquainted 
with the circumstances of the state, and who are not disposed to exag- 
gerate Its distresss as an excuse for inactivity, that its faculties for- 
revenue are diminished at least two thirds. 

It will not be difficult to conceive this, when we con- 
sider, that f^ve OLit of the fourteen counties of which the state was 
composed, including the capital, are in the hands of the enemy— that 
two and part of a third have revolted— two others have been deso-^ 
lated, the greater part, by the ravages of the enemy and of our own 
troops— and the remaining four have more or less suffered partial 
injuries from the same causes. Adding the fragments of some to 
repair the losses of others, the efficient property, strength and force 
of the state will consist in little more than four counties. 

In the distribution of taxes before the war the city of 
New York used to be rated at one third of the whole; but this was too 
high, owing probably to the prevalency of the country interest; the 
proper proportion I should judge to have been about one fourth; 
which serves further to illustrate the probable decrease of the State. 

Our population indeed is not diminished in the same 
degree, as many of the inhabitants of the dismembered and ruined 
counties who have left their habitations, are dispersed through those 
which remain; and it would seem that the labor of the additional hands 
ought to increase the culture and value of these; but there are many 
deductions to be made from this apparent advantage — the numbers 
that have recruited the British army — those that have been furnished 
to ours— the emigrations to Vermont and to the neighbouring states, 
less harrassed by the war, and affording encouragements to industry; 
both which have been considerable. Besides these circumstances many 
of the fugitive families are a burthen for their subsistence upon the 
state. The fact is labor is much dearer than before the war. 

This state has certainly made in the corrse of the war 
great exertions, and upon many occasions of the most exhausting 
kind. This has some times happened from want of judgment, at 
others from necessity. When the army, as has too often been the 
case, has been threatened with some fatal calamity, for want of pro- 
visions, forage, the means of transportation, &c., in consequence of 
pressing applications from the Commander in Chief, the Legislature 



has been obliged to have recourse to extraordinary expedients to 
answer the present emergency, which have both distressd and dis- 
gusted the people. There is no doubt that with a prudent and sys- 
tematic administration the state might have rendered more benefit 
to the common cause, with less inconvenience to itself, than by all 
its forced efforts; but here as everywhere else we have wanted 
experience and knowledge. And indeed had this not been the case, 
everything everywhere has been so radically wrong, that it was 
difficult, if not impossible, for any one state to be right. 

The exposed situation of the frontier and the frequent 
calls upon the inhabitants for personal service on each extremity, by 
interfering with industry, have contributed to impoverish the state 
and fatigue the people. 

Deprived of foreign trade, our internal traffic is ear- 
ned on upon the most disadvantageous terms. It divides itself into 
three branches; with the city of New York, with Jersey and Pensyl- 
vania, and with New England. 

That with New York consists chiefly of luxuries on 
one part and returns of specie on the other. I imagine we have taken 
goods from that place to the annual amount of near £30.000. The 
Legislature have passed a severe law to prevent this intercourse; but 
"what will laws avail against the ingenuity and intrepidity of avarice? 

From Jersey and Pensylvania we take about thirty 
thousand pounds more and we pay almost entirely in Cash. 

From Massachusetts and other parts of New England 
•we purchase to the amount of about £50.000, principally in tea and 
salt. We sell to these states to the value of about £30.000. The arti- 
cles of tea and salt alone cost this state the annual sum of sixty thou- 
sand pounds. 

The immense land transportation of which the chief 
part is carried on by the other subjects of other states is a vast incum- 
brance upon our trade. 

The principal article we have to throw in the opposite 
scale is the expenditures of the army. Mr. Sands informs me that the 
contractors for the main army and West point lay out in this state at 
the rate of about 60.000 dollars a year. Mr. Duer, for these northern 
posts about Thirty thousand. If the Quarter Master general expends 
as much more in his department, the whole will amount to about 
180,000 doll* I speak of what is paid for in specie or such paper as 
answers the purposes of specie. 

These calculations cannot absolutely be relied on be- 
cause the data are necessarely uncertain; but they are the result of the 
best information I can obtain; and if near the truth, prove that the 
general ballance of trade is against us, a plain symptom of which is an 
extreme and universal scarcity of money. 



The situation of the state, with respect to its internal 
government ,s not more pleasing. Here we find the general disease 
which mfects all our constitutions, an excess of popularity There is 
no order that has a will of its own. The inquiry constantly is what 
will please not what will benefit the people. In such a government 
there can be nothing but temporary expedient, fickeleness and folly. 

But the point of view in which this subject will be 
mteresting to you is that which relates to our finances. I gave you in 
a former letter a sketch of our plan of taxation; but I will now be 
more particular. 

The general principal of it is an assessment, according 
to circumstances and abilities collectively considered. 

The ostensible reason for adopting this vague basi-^ 
was a desire of equality. It was pretended, that this could not be ob- 
tained so well by any fixed tariff of taxable property, as by leaving it 
to the discretion of persons chosen by the people themselves, to de- 
termine the ability of each citizen. But perhaps the true reason was 
a desire to discriminate between the whigs and tories. This chimerical 
attempt at perfect equality has resulted in total inequality; or rather 
this narrow disposition to overburthen a particular class of citizens 
(living under the protection of the government) has been retorted 
upon the contrivers or their friends, wherever that class has been 
numerous enough to preponderate in the election of the officers who 
were to execute the law. The exterior figure a man makes, the 
decency or meaness of his manner of living, the personal friendships 
or dislikes of the assessors have much more share in determining 
what individuals shall pay, than the proportion of property. 

The Legislature first assesses, or quotas the several 
counties. Here the evil begins. The members cabal an intrigue to 
throw the burthen off their respective constituents. Address and in^ 
fluence, more than considerations of real ability prevail. A great deal 
of time IS lost and a great deal of expense incurred before the juggle 
is ended and the necessary compromises made. 

The Supervisors, of whom there are upon an average 
sixteen in each county, meet at the notification of the County clerk 
and assign their proportions to the subdivisions of the county; and in 
the distribution play over the same game, which was played in the 
Legislature. 

The Assessors assembled on a like notification ac- 
cording to their fancies, determine the proportion of each individual; 
a hst of which being made out and signed |by the Supervisors is a 
warrant to the collectors. There are near an hundred upon average in 
each county. "^ ' 

The allowance to these officers has been various; it ia 
now six shillings a day besides expenses; in some cases they have been 
limited to a particular time for executing the business; but in general 
It is left to their discretion, and the greater part of them are not in ^ 



hurry to complete it, as they have a compensation for their trouble, 
and live better at the public charge than they are accustomed to do at 
their own. The consequence is not only delay but a heavy expense. 

It now remains for the collectors to collect the tax, 
and it is the duty of the supervisors to see that they do it. Both these 
offices, as well as that of the assessors, are elective; and of course 
there is little disposition to risk the displeasure of those who elect. 
They have no motive of interest to stimulate them to their duty, equiv- 
alent to the inconvenience of performing it. The collector is intitled 
to the trifling compensation of sometimes four sometimes six pence 
out of each pound he CQllects, and is liable to the trifling penalty of 
twenty or five and twenty pounds for neglect of duty. The super- 
visors have no interest at all in the collection; and it will on this 
account appear not extraordinary, that with continual delinquencies 
in the collection there has never been a single prosecution. 

As I observed on a former occasion, if the collector 
happens to be a zealous man and lives in a zealous neighbourhood 
the taxes are collected; if either of these requisites is wanting the 
collection languishes or intirely fails. 

When the taxes are collected, they are paid to the 
County treasurer; an officer chosen by the Supervisors. The col- 
lectors are responsible to him also; but as he is allowed only one 
fourth or one half per cent, he has no sufficient inducement to incur 
the odium of compelling them to do their duty. 

The County Treasurer pays what he receives into the 
State Treasurer who has an annual salary of £300; and has nothing to 
do but to receive and pay out according to the appropriations of the 
legislature. 

Notwithstanding the obvious defects of this system, 
notwithstanding experience has shown it to be iniquitous and inef- 
fectual and that all atempts to amend it without totally changing it 
are fruitless, notwithstanding there is a pretty general discontent from 
the inequality of the taxes, still ancient habits, ignorance, the spirit 
'oi the times, the opportunity afforded to some popular characters of 
skreening themselves by intriguing with the assessors, have hitherto 
proved an overmatch for common sense and common justice as well 
as the manifest advantage of the State and of the United States. 

The temper of the state, which I shall now describe, 

may be considered under two heads, that of the rulers and that of the 

people. . . , 

The rulers are generally zealous m the common 

cause, though their zeal is often misdirected. They are zealous of 

their own power; but yet as this state is the immediate theatre of 

the war their apprehensions of danger and an opinion that they are 

obliged to do more than their neighbours make them very willing to 

part v/ith power in favour of the Foederal Government. This last 

■opinion and an idea added to it, that they have no credit for their 



past exertions has put them out of humour and indisposed many of 
them for future exertions. I have heard several assert, that in the 
present situation of this state, nothing more ought to be expected, 
than that it maintain its own government, and keep up its quota of 
troops. This sentiment however is as yet confined to a few, but it 
too palatable not to make proselytes. 

There is no man in the government who has a de- 
cided influence in it. The present governor has declined in popu- 
larity, partly from a defect of qualifications for his station and partly 
from causes that do him honor — the vigorous execution of some 
necessary laws that bore hard upon the people, and severity of dis- 
cipline among the militia. He is, I believe, a man of integrity and 
passes with his particular friends for a statesman; it is certain that 
without being destitute of understanding, his passions are much 
warmer, than his judgement is enlightened. The preservation of his 
place is an object to his private fortune as well as to his ambition; 
and we are not to be surprised, if instead of taking a lead in meas- 
ures that contradict a prevailing prejudice, however he may be con- 
vinced of their utility, he either flatters it, or temporises; especially 
when a new election approaches. 

The next character of a most uniform influence is 
General Schuyler. He has more weight in the Legislature than the 
Governor; but not so much as not to be exposed to the mortification 
of seeing important measures patronised by him frequently miscarry. 
Your knowledge of him in my connection prevent my enlargeing. I 
shall only add that he hazards his popularity in support of what you 
wish and what the public safety demands. 

I omitted speaking of the Lt Governor in his place; 
[ shall only say he is an honest man, without pretensions. I shall 
be silent on the subject of the Chancellor and of Mr. Duane, because 
I could not give you any additional light into their characters. 

Mr. Scot you also know. He has his little objects and 
his little party. Nature gave him genius; but habit has impaired it. 
He never had judgment; he now has scarcely plausibility; his influ- 
ence is just extensive enough to embarras measures he does not like; 
and his only aim seems to be by violent professions of popular prin- 
ciples to acquire a popularity which has hitherto coyly eluded his 
persuit. His views as a statesman are warped; his principles as a 
man are said to be not the purest. 

In the senate Judge Piatt. Judge Paine and Mr. Yates 
have each their share of influence. 

The first is a man of plain sense, thoroughly ac- 
quainted with agriculture. He intends to do well whenever he can 
hit upon what is right. 

The second is a man of strong natural parts and of 
strong prejudice; his zeal is fiery, his obstinacy unconquerable. He 



is as primitive in his notions, as in his appearance. Without educa- 
tion, he wants more knowledge, or more tractableness. 

The third is a man whose ignorance and oerverseness 
are only surpassed by his pertinacity and conceit. He hates all high- 
flyers, which is the appellation he gives to men of genius. He has the 
merit of being always the first man at the Legislature. The people 
have been a long time in the habit of choosing him in different offices; 
and to the title of prescription, he adds that of being a preacher to 
their taste. He assures them, they are too poor to pay taxes. He 
is a staunch whig, that deserves to be pensioned by the British Min- 
istry. He is commissioner of the loan office in this state. 

In the assembly the leading members are, Mr. Mal- 
colm, Mr. Lawrance, Mr. Lansing, Judge Treadwell and Mr. 
Humphreys. 

Malcolm has a variety of abilities; he is industrious 
and expert in business; he wants not resource and is pretty right on 
the subjects of the day; but he is too fond of popularity and too apt 
to think every scheme bad, that is not his own. He is closely linked 
with Scot, because he can govern him. A man of warm passions — 
he can controul all but his vanity, which often stands in the way of his 
interest. He is accused of duplicity and insincerity. He has it in his 
power to support or perplex measures as he may incline, and it will 
be politic to make it his interest to incline to what is right. It was 
on this principle I proposed him for a certain office. 

Lawrance is a man of good sense and good intentions 
— has just views of public aflfairs — is active and accurate in business. 
He is from conviction an advocate for strengthening the Foederal 
government and for reforming the vices of our interior adminis- 
tration. 

Lansing is a good young fellow and a good prac- 
titioner of the Law; but his friends mistook his talents when they made 
him a statesman. He thinks two pence an ounce upon plate a 
monstrous tax. The county of Albanj' is not of my opinion concerning^ 

him. 

Treaddle is esteemed a 

sensible and an honest man. 

Mr. Humphreys has his admirers, because he is pretty 
remarkable for blunder and vociferation. He said the last session of 
the assembly — that it was very inconvenient for the country members 
to be detained at that season — that for his own part no motive would 
induce him to stay, but to sacrifice the interest of his country. 

In the council of revision, which is composed of the 
Governor, Chancellor and the three Judges; Mr. Morris the chief 
Justice is a well meaning man — Judge Yates is upright and re- 
spectable in his profession. Hobart is solemn and sententious. He 
think? rightly in the main as to the imperfections of our present sys- 
tem, both general and particular and the proper remedy; but he has 



a prodigious propensity to a convulsion; and he augurs many fine 
things from a second bankruptcy and a total derangement of our 
affairs. "Then (says he) and not 'till then Order will rise out of 
confusion"! 

I have now touched upon the principal public char- 
acters among us; there are others who have their little circles of 
influence; some of whom deserve more others much less. I have 
contented myself with outlines, because Mr. G. Morris will be able to 
give you much more satisfactory portraits. What I have done is only 
in compliance with your request. 

The rulers of this state are attached to the alliance, 
as are the whigs generally. 

They have also great confidence in you personally; 
but pretty general exception has been taken to a certain letter of 
yours written I believe in the Winter or spring. The idea imbibed is 
tnat it contains a reflection upon them for their past exertions. I 
have on every account combatted this impression which would not 
fail to have an ill effect, and I mention it to you with freedom, because 
it is essential you should know the temper of the states respecting 
yourself. 

As to the people, in the early periods of the war, 
near one half of them were avowedly more attached to Great Britian 
than to their liberty; but the energy of the government has subdued 
all opposition. The state by different means has been purged of a 
large part of its malcontents; but there still remains I daresay a third 
whose secret wishes are on the side of the enemy; the remainder 
side for peace, murmur at taxes, clamour at their rulers, change one 
incapable man for another more incapable; and I fear if left to them- 
selves would, too many of them, be willing to purchase peace at any 
price, not from inclination ^o great Britian, or disaffection to inde- 
pendence, but from mere supineness and avarice. The speculation of 
evil from the claims of Great Britian gives way to the pressure of 
inconveniences actually felt ; and we requireed the event which has lately 
happened, the recognition of our independence by the Dutch to give 
a new spring to the public hopes and the public passions. This has 
had a good effect. And if the Legislature can be brought to adopt 
a wise plan for its finances, we may put the people in better humour, 
and give a more regular and durable movement to the machine, the 
people of this state as far as my observation goes, have as much firm- 
ness in their make, and as much submissiveness to government as 
those of any part of the Union. 

It remains for me to give you an explicit opinion of 
what it is practicable for this state to do. Even with a judicious plan 
of taxation I do not think the state can afford or the people will bear 
to pay more than seventy, or eighty thousands pounds a year. In its 
intire and flourishing state according to my mode of calculating it 
could not have exceeded two hundred and thirty or fortv thousand 
pounds; and reduced as it is with the wheels of circulation so exceed- 



ingly clogged for want of commerce and a sufficient medium more- 
than I have said cannot be expected. Passed experience will not 
authorize a more flattering conclusion. 

Out of this is to be deducted the expense of the 
interior administration and the money necessary for the levies of 
men. The first amount to be about £15,000 — as you will perceive by 
the inclosed state; but I suppose the Legislature would choose to 
retain £20,000. The money hitherto yearly expended in recruits has 
amounted to between twenty and thirty thousand pounds; but on a 
proper plan ten thousand might suffice. There would then remain 
forty thousand pounds for your department. 

But this is on the supposition of a change of system; 
for with the present I doubt there being paid into the Continental 
treasury one third of that sum. I am endeavouring to collect materials 
for greater certainty upon this subject. But the business of supplies 
has been so diversified, lodged in such a variety of independent hands 
and so carelessly transacted that it is hardly possible to get any 
tolerable idea of the gross and net product. 

With the help of these materials I shall strive to 
convince the Committee when they meet that a change of measure 
is essential; if they enter cordially into right views we may succeed; 
but I confess I fear more than I hope. 

I have taken every step in my power to procure the 
information you have desired in your letter of July 81 — the most 
material part of it, an account of the supplies furnished since march 
80 has been committed to Col Hay. I have written to him in 
pressing terms to accelerate the preparation. 

You will perceive Sir, I have neither flattered the 
state nor encouraged high expectations. I thought it my duty to 
exhibit things as they are not as they ought to be. I shall be sorry 
if it give an ill opinion of the state for want of equal candor in the 
representations of others; for however disagreeable the reflection, I 
have too much reason to believe that the true picture of other states 
would be in proportion to their circumstances equally unpromising. 
All my inquiries and all that appears induces this opinion. I intend this 
letter in confidence to yourself and therefore I indorse it privat,e. 

Before I conclude I will say a word on a point that 
possibly you could wish to be informed about. The contract up this 
way is executed generously to the satisfaction of the officers and 
soldiers, which is the more meritorious in the Contractor as in all 
probability it will be to him a losing undertaking. 

I have the honor to be with sentiments and unfaned 
esteem 

Sir, 

Your most Obedient & humble 

Servant 
A Hamilton 

The Honble The Superintendent of Finance 







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Facsimile of Last Pai^e. 



LIBRARY OF CONGRESS 



011 801 974 ft] 



LIBRARY OF CONGRESS 





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